Saving Europe with… ABS?!

The European Central Bank is mulling creative measures to stave off deflation but one of them, revamping a market that was at the heart of the financial crisis, will take time with no guarantee it will take off.

It is scrambling to boost Europe’s market for securitized assets – those backed by loans.

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The Return of the Renminbi Rant

China’s currency, the renminbi, has been weakening in recent months, resurrecting familiar charges of manipulation, competitive devaluation, and beggar-thy-neighbor mercantilism. In mid-April, the US Treasury expressed “particularly serious concerns” over this development, underscoring what has long been one of the most contentious economic-policy issues between the United States and China.

This is a timeworn debate — politically inspired and grounded in bad economics — that does a serious disservice to both sides by diverting attention from far more important issues affecting the US-China economic relationship. Taken to its extreme, America’s accusations risk pushing the world’s two largest economies down the slippery slope of trade frictions, protectionism, or something even worse.

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Swiss Government rejects multilateral automatic exchange deals

The Swiss government has announced it will not sign multi-lateral international agreements for automatic exchange of tax information, only bilateral ones that deal with regularization of the past and market access for banks. It also intends to switch its FATCA agreement with the US from Model 2 to Model 1, under which account data is collected by domestic tax authorities and exchanged reciprocally.

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Sound of silence sweeps across asset classes

Global markets are less volatile than at any time in almost a decade as central bank intervention has sent share prices to record highs and interest rates to historic lows.

Gauges of market volatility for currencies, equities, bonds and oil have all plummeted, with analysts attributing the falls to the widespread view that official interest rates will remain exceptionally low for a long time.

But some analysts see echoes of the period of calm before the last financial crisis. George Magnus, economic adviser to UBS, said there was a resemblance to the so-called “Great Moderation” period leading up to 2007. “The previous Great Moderation ended in great volatility; this one may well do so too,” he warned in a note.

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Daily Bell Interview with Ron Holland – on the US imperium, coming dollar difficulties and the advantages of investing abroad

Their [the Fed’s] ultimate goal is to create wealth and a sense of well-being for the wealthiest 1% of the population. They are buying off this tiny percentage of our population because they have the power while they make the rest of us poorer and take what we have earned. I hear all of the propaganda against the oligarch friends of Putin in Russia. These wealthy few keep Putin in power and he does in general represent their interests but at least he loves his country and wants the best for his nation. America and other countries in the West also have our “secret oligarchs” and wealthy families that run the show.

Governments have always been run this way – lip service for the poor and under-privileged, false democracy for the masses but in the real world, only the powerful elites have any real political power. This has been the case for thousands of years and it will not change.

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ECB Strategy for 2014: Whatever it takes 2.0

Draghi to Merkel: “It’s all about keeping everybody happy, whatever it takes. Play that tune Angie, play it with a smile…if you please.”

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